Company Name Guidelines and Approval Process in India: Everything You Need to Know

Company Name Guidelines and Approval Process in India: Everything You Need to Know

Choosing the right name for your company is a crucial step in establishing your business identity in India. This guide outlines the essential guidelines and the approval process for registering a company name, ensuring that you meet all regulatory requirements.

Guidelines for Choosing a Company Name

Uniqueness and Distinctiveness: The proposed name must be unique and not identical or similar to an existing company name. Conduct a name search on the Ministry of Corporate Affairs (MCA) portal to ensure the name’s availability.

No Trademark Infringement: Ensure the name does not infringe on registered trademarks. You can verify this through the Intellectual Property India website.

Prohibited Words: Avoid using words that are offensive, misleading, or suggest government affiliation. Terms like “National,” “Bank,” “Stock Exchange,” and others that imply government patronage require special approval.

Relevance to Business Activities: The name should reflect the main objectives and activities of your company. This helps in maintaining clarity and transparency.

Legal Structure Indication: For private limited companies, the name should end with “Private Limited,” and for public limited companies, it should end with “Limited.”

Approval Process for a Company Name

Digital Signature Certificate (DSC): Obtain a DSC for the directors of the company. This is required for the submission of electronic forms to the MCA.

Director Identification Number (DIN): Ensure all directors have a DIN. This unique identification number is mandatory for directors of Indian companies.

Name Reservation Application (RUN): Use the Reserve Unique Name (RUN) service on the MCA portal to apply for the reservation of your chosen name. You can submit up to two proposed names for consideration.

Submission of Incorporation Documents: Once the name is approved, prepare and submit the incorporation documents, including the Memorandum of Association (MOA) and Articles of Association (AOA), along with Form SPICe (Simplified Proforma for Incorporating Company Electronically).

Payment of Fees: Pay the requisite fees for name reservation and incorporation filing. The fee varies depending on the authorized capital of the company.

Certificate of Incorporation: After verification, the Registrar of Companies (ROC) will issue a Certificate of Incorporation, confirming the registration of the company name and the establishment of the company.

Key Considerations

Validity of Name Approval: The approved name is reserved for 20 days (from the date of approval) for new companies and for 60 days for existing companies undergoing a name change.

Rejection of Name: If the proposed name is rejected, reapply with a new name by following the same procedure. Ensure compliance with all guidelines to avoid repeated rejections.

Professional Assistance: Consider seeking assistance from legal professionals or company secretaries to navigate the complexities of the name approval process.

By adhering to these guidelines and following the outlined approval process, you can secure an appropriate and compliant name for your company, paving the way for successful business operations in India. Registering your company in Pune has never been easier! Use your IConnect account to streamline the process and get your business up and running in no time. From documentation to approvals, we’ve got you covered. Start your entrepreneurial journey with us today.

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